Balrampur Chini to hike FII limit to 60%

KOLKATA: To facilitate higher foreign investment, the Saraogis of Balrampur Chini Mills (BCML) plan to enhance the company’s FII limit by 20 percentage points to 60%.

Since BCML’s board has already approved the company’s proposal to increase the FII limit, it now intends to seek shareholders’ nod for this at the forthcoming annual general meeting.

While the Saraogis are conservative talking about the move, international media and investor limelight appear to be sharply focused on BCML. The company attracted the first FDI in the sugar industry when a cluster of foreign corporate bodies picked up 8.34% of its equity. It raised another Rs 113.08 crore by issuing fresh equity to Citicorp International Finance Corporation and New Vernon Bharat — a Mauritius-based corporate body.

Increasing number of strategic overseas investors like Janus Overseas Fund and Deutsche Securities Mauritius and HSBC Global Investment Funds Mauritius have also picked up stake in BCML from the open market over the past couple of months, analysts said.